Singapore legislation
Section 47
Section 47
Remuneration framework for representatives and supervisors
(1)
A licensed financial adviser must establish and maintain a remuneration framework in conformity with subsection (2) for the purpose of —
reviewing and assessing the performance of its representatives and its supervisors; and
determining the remuneration of its representatives and supervisors.
(2)
Every remuneration framework in respect of representatives and supervisors of a licensed financial adviser must contain terms consistent with the requirements prescribed under section 135 or specified by the Authority by written notice, from time to time.
(3)
A licensed financial adviser must ensure that every agreement or arrangement entered into between the licensed financial adviser and each of its representatives or supervisors on or after 1 January 2016 does not contain terms which are inconsistent with the remuneration framework mentioned in subsection (1).
(4)
A licensed financial adviser must —
review and assess the performance, and determine the remuneration of its representatives and supervisors; and
pay remuneration accruing on or after 1 January 2016 to its representatives and supervisors,in accordance with the remuneration framework mentioned in subsection (1).
(5)
This section applies despite —
any written law in force on 1 January 2016 or rule of law to the contrary; or
any agreement or arrangement entered into before, on or after 1 January 2016.
(6)
In carrying out any act in accordance with the remuneration framework mentioned in subsection (1), the licensed financial adviser is not to be treated as having —
breached any rule of law or written law mentioned in subsection (5)(a); or
breached any agreement or arrangement mentioned in subsection (5)(b) entered into before 1 January 2016,and no such agreement or arrangement is taken to be brought to an end by frustration solely by reason of any act done in compliance with the remuneration framework or any requirements prescribed or specified under subsection (2).
(7)
Any licensed financial adviser who contravenes subsection (1), (3) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction.
(8)
The Authority may by regulations under section 135 prescribe —
the persons to whom this section does not apply; and
the circumstances in which this section does not apply.
(9)
A written notice issued under this section need not be published in the Gazette.
(10)
In this section, “remuneration” includes —
any monetary commission, incentive, benefit or reward;
any non-monetary incentive, benefit or reward; and
such other consideration as may be prescribed under section 135 or specified by the Authority by written notice.[38